Local Taxesleg.wa.gov/JTC/trm/Documents/TRM_1315Update/8 - Local...Local MVET of up to 0.3% in the case of a county or 0.8% in the case of a regional transportation investment district

Transportation Resource Manual Local Taxes 111

Local Taxes

Overview and Table of Contents

This section summarizes the transportation taxes that have been authorized by the Legislature for use by local

governments. These taxes may be used for a broad range of transportation purposes, including road

construction, mass transit, high capacity transportation, and high occupancy vehicle (HOV) systems. In

addition to the local option taxes described in this section, local governments can use several other revenue

sources to fund transportation, including distributions of the state motor fuel tax (gas tax), federal funds,

bonds, state grants, and local general funds. Further information on revenue sources for local jurisdictions

can be found in the Local Jurisdictions section of this manual. Several of the option taxes available to local

governments for transportation were established as part of the 1990 transportation revenue package.

Local Taxes ......................................................................................................................................................111 Border Area Motor Vehicle Fuel and Special Fuel Tax ............................................................................ 112 City Street Utility Charge (Declared invalid November 1995) ................................................................. 113 Commercial Parking Tax ........................................................................................................................... 114 Local Option Taxes for High Capacity Transportation (MVET, Rental Car, Employee, Sales Tax) ....... 115 Local Option Taxes for High Occupancy Vehicle (HOV) Systems (MVET, Employee) ......................... 117 Local Option Taxes for Ferry Services ..................................................................................................... 119 Local Option Taxes: Regional Transportation Investment Districts (RTIDs) ........................................... 121 Local Option Taxes: Transportation Benefit Districts ............................................................................. 122 Local Option Motor Vehicle and Special Fuel Tax for Counties .............................................................. 124 Property Tax Road Levy ........................................................................................................................... 125 Transit Taxes ............................................................................................................................................. 126 Supporting Information ............................................................................................................................. 127

Local Option Fuel Tax ........................................................................................................................ 129 Local Tax for Transit .......................................................................................................................... 130 Background Information .....................................................................................................................131

Summary Chart of Local Option Taxes for Transportation ................................................................132

112 Local Taxes Transportation Resource Manual

REVENUE SOURCE: Border Area Motor Vehicle Fuel and Special Fuel Tax

RCW: RCW 82.47.020 (Authorized in 1991)

WHO'S ELIGIBLE

Cities and towns within 10 miles of an international border crossing or transportation benefit districts

(TBDs) that contain an international border crossing.

WHERE ENACTED

Sumas, Blaine, Nooksack and Point Roberts Transportation Benefit Districts (TBDs) have enacted this tax.

PURPOSE

For street maintenance and construction in areas along the Canadian border that are experiencing

extraordinary traffic levels and impacts due to Canadian motorists.

PROVISIONS

Jurisdictions are authorized to impose a tax of up to one cent. Voter approval is required. Revenue may be

used only for street construction and maintenance. Tax applies to both motor vehicle fuel and special fuel.

REVENUE

In years 2004 through 2011, four cities reported border area fuel taxes to WSDOT in their annual financial

reports of transportation revenues and expenditures. Total border area vehicle fuel taxes reported were

$321,302 in calendar year 2011 and $218,183 in 2010.

Each of the four cities imposes a current rate of 1¢/gallon.

BORDER AREA MOTOR VEHICLE FUEL TAX

Blaine Nooksack Pt. Roberts Sumas

2011 185,213 13,658 79,297 43,134

2010 122,446 14,157 54,938 26,642

2009 88,627 14,161 35,894 19,181

2008 102,514 13,879 51,245 20,598

2007 99,831 14,641 42,208 21,004

2006 101,408 14,499 41,668 20,075

2005 107,604 14,589 43,689 15,411

2004 99,191 14,951 35,278 14,049

http://apps.leg.wa.gov/rcw/default.aspx?cite=82.47.020


REVENUE SOURCE: City Street Utility Charge (Declared invalid November 1995)


WHO'S ELIGIBLE Cities

WHERE ENACTED

The city street utility charge was declared invalid by the Washington State Supreme Court in November

1995.

The Court found in Covell v. City of Seattle that the street utility tax was not a valid fee, but a tax on property that

violated (1) the State Constitution’s tax uniformity clause, which requires that the rate of tax be a uniform

percentage of value for all real property, and (2) the one percent levy limitation, which requires voter approval for

property taxes that exceed 1% of property value.

Prior to November 1995, the following cities had enacted this charge: Grandview, Kent, Mabton, Marcus,

Medical Lake, Richland, Seattle, Snoqualmie, Soap Lake, Union Gap, Wenatchee, and Wilkeson.

PURPOSE

Street utilities were authorized to be established to own, maintain, operate, and preserve any prescribed portion of

the streets of a city or town. Street utilities may include street lighting, traffic control devices, sidewalks, curbs,

gutters, parking facilities, and drainage facilities. Street utility revenue could only be used for transportation

purposes.

SELECTED PROVISIONS of 1990 ACT

City levy only.

Rate capped at equivalent of $2 per employee per month for businesses and $2 per housing unit per month as

defined in RCW 35.95.040.

Rates must be uniform within each class of service (business and residential) and both classes must be

assessed the charge.

Other features:

Revenue limited to 50% of maintenance and operations budget

Tax exempt entities do not pay

Full credit given against street utility charge for any commuter or employer tax based on number of

employees collected for transportation purposes.

Not subject to a vote of the people or to exclusive referendum procedure; subject to local laws regarding

referenda.

REVENUE

Cities that imposed the city street utility charge during 1995 and reported the revenue on city street forms

submitted to the Department of Transportation:

Grandview $75,096

Mabton $5,598

Marcus $1,419

Medical Lake $26,212

Richland $423,074

Seattle $10,273,672

Snoqualmie $24,416

Soap Lake $18,140

Union Gap $94,240




REVENUE SOURCE: Commercial Parking Tax


WHO'S ELIGIBLE County (unincorporated area), city, RTID

WHERE ENACTED

The cities of SeaTac, Bainbridge Island, Bremerton, Mukilteo, and Tukwila have implemented this tax.

PURPOSE

For general transportation purposes, including construction and operation of state highways, county roads, and

city streets; public transportation; high capacity transportation; transportation planning and design; and other

transportation-related activities.

PROVISIONS

No rate set; rate setting parameters provided.

Tax may either be on the commercial parking business, based on gross proceeds or number of stalls, or on the

customer (similar to an admissions tax).

Tax exempt carpools, vehicles with handicapped decals, and government vehicles are exempt from the tax.

Subject to planning provisions.

Subject to exclusive referendum procedure. (See Background Information, page 131 ).

REVENUE

Jurisdictions that imposed the commercial parking tax during 2011 and reported to the Department of

Transportation annual in their local government transportation financial statistics report.

Commercial Parking Tax Collections By City: Calendar Year 2011

Commercial Parking Tax Collections By City:

Calendar Year 2011

City Commercial Parking Tax ($)

Bainbridge Island $552,436

Bremerton $319,380

Brewster $7,424

Burien $26,770

Dayton $53,933

DesMoines $18,895

Mukilteo $10,548

Redmond $3,989565

Sea Tac $5,920,220

Seattle $28,300,237

Tukwila $143,949



REVENUE SOURCE: Local Option Taxes for High Capacity Transportation (MVET, Rental Car, Employee, Sales Tax)

RCW: RCW 81.104.140 through RCW 81.104.170 (Authorized in 1990)

WHO'S ELIGIBLE

Regional transit authorities (RTA) in King, Pierce, and Snohomish counties; transit agencies in Thurston, Clark,

Kitsap, Spokane, and Yakima counties; Regional Transportation Investment Districts (RTID); and high capacity

transportation corridor areas (established pursuant to RCW 81.104.200).

WHERE ENACTED

RTA in King, Pierce, and Snohomish counties enacted a high capacity transportation (HCT) tax in November

1996.

PURPOSE

For planning, constructing, and operating high capacity transportation (HCT), commuter rail, and feeder

transportation systems. Voter approval required.

PROVISIONS

Motor Vehicle Excise Tax (RCW 81.104.160)

Authority repealed by Initiative 776.

In Pierce County v. State 159 Wn2d 16 (2006) the Washington State Supreme Court held that Initiative

776 impermissibly impaired the contractual obligations between Sound Transit and its bondholders in

violation of the state constitution's contract clause. As a result, Sound Transit was permitted to continue

to levy the motor vehicle excise tax for so long as the bonds remain outstanding.

Rental Car Tax (RCW 81.104.160)

For rental vehicles on which sales and use tax is collected in lieu of MVET, additional sales tax be

collected up to a maximum rate of 2.172%

Employer Tax (RCW 81.104.150)

Up to $2 per employee per month.

Not allowed if HOV employer tax in effect.

Sales and Use Tax (RCW 81.104.170)

Up to 1% of purchase price on taxable items.

Limited to 0.9% in counties that have imposed 0.1% sales tax for criminal justice and in regional transit

authorities in which any member county has imposed the 0.1% criminal justice tax.

General Provisions

Tax revenues may be pledged for bonds.

Local agencies may contract with Department of Revenue or other entities to collect taxes.

Commuter rail is an authorized use of both HOV and HCT funds.

RTIDs, with the approval of the RTA within its boundaries, may impose HCT taxes only to the extent

that the maximum amount of taxes have not yet been imposed.









REVENUE

Only Sound Transit imposes high capacity transportation taxes. Actual revenues collected by the Regional Transit

Authority during 2009 through 2011 as reported by Sound Transit:

High Capacity Transportation Taxes, Regional Transit

Authority/Sound Transit

Calendar Year MVET

(0.3%)

Sales Tax

(0.9%)

Rental Car Tax

2009 $64.5 M $393.9 M $2.78 M

2010 $66.5 M $500.6 M $2.47 M

2011 $65.4 M $525.4 M $2.49 M

The MVET tax rate is 0.3% and the sales tax rate was 0.4% through March 2009. Beginning April

2009, sales tax rate was increased to 0.9%.

Amounts which could be collected if HCT Taxes were imposed

Revenue Estimates ($ millions), Calendar Year 2011

Transit Agency $2 per Employee

per Month

0.9% Sales Tax MVET

Sound Transit $39.8 M* See RTA (Sound Transit) actuals above

King County $27.5 M Included in Sound Transit

Authority

repealed by

Initiative 776

Pierce County $6.3 M Included in Sound Transit

Snohomish County $6.0 M Included in Sound Transit

Spokane County $4.9 M $62.3 M

Clark County $3.0 M $29.0 M

Kitsap County $2.0 M $29.0 M

Thurston County $2.3 M $30.0 M

Yakima County $1.8 M $19.9 M

Sales tax revenue estimates are based on the actual revenue base for 2011 for these transit districts.

Employer tax estimates do not include any deduction for credits to employers that have ride-sharing programs.

*Amounts reflect the total of potential revenue from King, Pierce and Snohomish counties. Sound Transit may

not impose the employee tax if any county within its boundaries is imposing the tax.

For other revenue assumptions, see Background Information, page 131.


REVENUE SOURCE: Local Option Taxes for High Occupancy Vehicle (HOV) Systems (MVET, Employee)

RCW: RCW 81.100.030, RCW 81.100.060 (Authorized in 1990)

WHO'S ELIGIBLE

Regional Transportation Investment Districts (RTIDs) and King, Pierce, and Snohomish counties

WHERE ENACTED

No entity has enacted a high occupancy vehicle (HOV) tax.

PURPOSE

For high occupancy vehicle (HOV) lane development, mitigation of environmental impacts of HOV development,

support of employer programs to reduce single-occupant commuting, and commuter rail programs. Authorized

for King, Pierce, and Snohomish counties, with voter approval.

PROVISIONS

Motor Vehicle Excise Tax (RCW 81.100.060)

Local MVET of up to 0.3% in the case of a county or 0.8% in the case of a regional transportation

investment district.

A local surcharge at a rate of up to 13.64% may be applied to sales and use tax on rental vehicles in lieu

of the MVET.

Trucks over 6,000 pounds are exempt.

A county or an RTID may impose the MVET and the sales and use tax surcharge on rental vehicles only

to the extent that it has not been imposed by an eligible county or an RTID.

If the employer tax for HOV systems is also imposed, the total tax from both sources may not exceed the

maximum which could be collected from the MVET.

Employer Tax (RCW 81.100.030)

Up to $2 per employee per month.

May include public and private employers, including state agencies.

Credits employers who are participating in ride-share programs.

If MVET surcharge is also imposed, the total tax from both sources may not exceed the maximum which

could be collected from the MVET.

General Provisions

Commuter rail is an authorized use of both HOV and HCT funds. Because commuter rail uses existing

rail lines, it is included with HOV programs as a near-term capacity improvement. It also may be a

component for addressing long-term HCT system needs.

Requires that counties imposing tax must adopt specific goals and policies related to congestion

reduction, ride-sharing, planning, and cooperation with the state.






Amounts which could be collected if HOV Taxes were imposed

Revenue Estimates ($ millions), Calendar Year 2011

County

0.3% MVET

$2 per Employee per month

Max. HOV

Collections

King $0 $27.5 M $27.5 M

Pierce $0 $6.3 M $6.3 M

Snohomish $0 $6.0 M $6.0 M

Employer tax estimates do not include any deduction for credits to employers that have ride-sharing programs.

For other revenue assumptions, see Background Information, page 131.


REVENUE SOURCE: Local Option Taxes for Ferry Services

RCW: Chapter 36.54 and 36.57A RCW

WHO'S ELIGIBLE

County Ferry Districts can be established to provide passenger only ferry service in all or a portion of a county

(RCW 36.54.110).

A Public Transportation Benefit Area (PTBA) having a boundary on the Puget Sound may provide passenger-

only ferry (POF) service (RCW 36.57A.200).

Counties, under their general authority, may construct and operate ferries (RCW 36.54.010).

WHERE ESTABLISHED

King County established a ferry district on April 30, 2007. The King County Ferry District is an independent

special purpose government overseen by King County Council members as the Ferry District Board of

Supervisors which governs the district.

The Annual Summary of Public Transportation includes information on county ferry services.

PURPOSE

To expand transportation options for county residents by enabling operation of passenger-only ferry service to

various parts of the county.

FINANCE PROVISIONS – COUNTY FERRY DISTRICTS

Ad valorem tax (36.54.130)

Not to exceed seventy-five cents per $1,000 assessed value except in King County where the limit is

seven and one-half cents per $1,000 assessed value. Can be imposed by county legislative authority

Annual imposition

Excess Property Tax Levy (36.54.140)

Annual imposition

Voter approval required

FINANCE PROVISIONS – PUBLIC TRANSPORTATION BENEFIT AREAS ON PUGET SOUND--

PASSENGER-ONLY FERRY SERVICE (RCW 36.57A.210)

Motor Vehicle Excise Tax (82.80.130)

Up to 0.4% on renewals, voter approved

On vehicles licensed for 6000 pounds or less

Sales and Use Tax (82.14.440)

Up to 0.4%, voter approved

Cannot be imposed where a Regional Transit Authority has been established

Other Revenue Sources

Ferry tolls for passengers and packages, and parking tolls where applicable

Leasing and advertising fees

http://apps.leg.wa.gov/rcw/default.aspx?cite=36.54

http://apps.leg.wa.gov/rcw/default.aspx?cite=36.57A


http://apps.leg.wa.gov/rcw/default.aspx?cite=36.57A.200


http://www.wsdot.wa.gov/publications/manuals/fulltext/m0000/TransitSummary/FerrySystems.pdf







REVENUE

King County Ferry District has a variety of funding sources including ferry fares, advertising, property taxes, state

forecast timber sales and state and federal grants. The 2010 revenue by source is based on King County Ferry

District 2010 Annual Operating and Capital Budget.

King County Ferry District 2010 Revenue by Source

($ millions)

Revenue Budget Amount

Ferry Fares $1.065 M

Advertising $0.067 M

Property Tax $1.183 M

State Forecast Timber Sales $0.128 M

Interest Income $0.210 M

State and Federal Grants $4.700 M

TOTAL $7.350 M


REVENUE SOURCE: Local Option Taxes: Regional Transportation Investment Districts (RTIDs)

RCW: Chapter 36.120 RCW (Authorized in 2002)

WHO'S ELIGIBLE

Regional Transportation Investment Districts can be established in King, Pierce and Snohomish counties. Prior to

December 1, 2007, an RTID must include at least two adjacent counties. After December 1, 2007, an RTID can

include one or two or more contiguous counties. See Resource Manual Section: Agencies and Jurisdictions—

Local/Regional for RTID discussion, page 416.

WHERE ESTABLISHED:

On November 6, 2007, the voters of Snohomish, King and Pierce Counties voted on Proposition 1, which

included RTID Blueprint for Progress and Sound Transit Phase 2 plans. The measure was defeated.

PURPOSE

Principally to finance capital construction of highways of statewide significance in the district.

FINANCE PROVISIONS (RCW 36.120.050) All voter approved:

Sales and Use Tax (36.120.050(1)(a) and 82.14.430)

Up to 0.1%,

Vehicle License Fee (36.120.050(1)(b) and 82.80.100)

Up to $100 annual fee

Motor Vehicle Excise Tax (36.120.050(1)(d) and 81.100.060)

Up to 0.8%,

Must use new state defined depreciation schedule (82.44.035)

Parking Tax (36.120.050(1)(c) and 82.80.030)

On commercial businesses

Tolls (36.120.050(1)(g))

Routes to be tolled must be identified in investment plan.

Tolls administered by WSDOT unless otherwise provided for in law.

Tolls must be approved by Transportation Commission and the Commission is the tolling authority.

Local Option Fuel Tax (36.120.050(1)(e) and 82.80.120)

Equal to 10% of statewide fuel tax (3.4 cents per gallons based on 34 cent statewide gas tax).

County may levy tax used for district or a district may levy the tax.

Districts can only levy tax if boundaries are coextensive with member county boundaries.

Restricted to 18th amendment purposes.

Tax may not be levied by both a county and an RTID
















REVENUE SOURCE: Local Option Taxes: Transportation Benefit Districts

RCW: Chapter 36.73 RCW (Authorized in 1987)

WHO'S ELIGIBLE

Transportation Benefit Districts which can be established city-wide up to multi-county. Since December 1, 2007,

TBDs may be established in all counties. See Resource Manual Section: Agencies and Jurisdictions—

Local/Regional for TBD discussion, page 420.

WHERE ESTABLISHED

Twenty-four cities have established TBDs with local vehicle registration fees. Eight cities have established TBDs

with sales tax rate authority. One city, Ridgefield, has repealed its TBD sales tax authority beginning October 1,

2012.

Transportation Benefit Districts Effective SalesTax/Fee Rate

TBD With Local Vehicle Registration Fees

City of Edmonds September 1, 2009 $20

City of Des Moines September 1, 2009 $20

City of Lake Forest Park September 1, 2009 $20

City of Olympia October 1, 2009 $20

City of Edmonds September 1, 2009 $20

City of Prosser November 1, 2009 $20

City of Shoreline February 1, 2010 $20

City of Burien No. 1 February 1, 2011 $10

City of Snoqualmie March 1, 2011 $20

City of Seattle May 1, 2011 $20

City of Lynnwood July 1, 2011 $20

City of Spokane September 1, 2011 $20

City of Mabton December 1, 2011 $20

City of Grandview February 1, 2012 $20

City of Bremerton July 1, 2012 $20

City of Zillah July 1, 2012 $20

City of Wenatchee August 1, 2012 $20

City of Mountlake Terrace August 1, 2012 $20

City of Royal City November 1, 2012 $20

City of Toppenish December 1, 2012 $20

City of Kittitas December 1, 2012 $20

City of Eatonville March 1, 2013 $20

City of Wapato April 1, 2013 $20

City of Orting 2/1/2013 thru

1/31/2015

$20

TBD With Sales Tax Rates

City of Ridgefield April 1, 2009 0.2% (effective 4-1-2009

and repealed 10/1/2012)

City of Sequim April 1, 2010 0.2%

City of Bellingham April 1, 2011 0.2%

City of Leavenworth April 1, 2011 0.2%

City of Snohomish January 1, 2012 0.2%

City of North Bend April 1, 2012 0.2%

City of Walla Walla July 1, 2012 0.2%

City of Ferndale July 1, 2012 0.2%

City of Waitsburg October 1, 2012 0.1%



PURPOSE

To finance construction of, and operate, improvements to roadways, high capacity transportation systems, public

transit systems, and other transportation management programs.

FINANCE PROVISIONS (Ch 36.73 RCW and RCW 36.73.040)

Sales and Use Tax (RCW 82.14.0455)

Up to 0.2%, with voter approval

Tax may not be in effect longer than 10 years unless reauthorized by voters

Motor Vehicle License Renewal Fee (RCW 82.80.140)

Up to $20 per vehicle fee without voter approval

Up to $100 annual renewal fee, with voter approval

Vehicles of 6000 pounds or less

Certain vehicles are exempt: farm vehicles, campers, personal and commercial trailers, off-road vehicles,

government and private school vehicles

Excess Property Tax Levies (RCW 36.73.060)

One year, voter approved

Multi-year for GO bonds

Tolls (RCW 36.73.040(2)(d))

Tolls on facilities including state routes and local roads

Tolls on state routes must be administered by WSDOT

All tolls must be approved by Transportation Commission

Other Revenue Sources

Border Area Motor Fuel and Special Fuel Tax (RCW RCW 82.47.020) *

Late-comer fees (RCW 36.73.140)

Development fees (RCW 36.73.040(2)(c) and RCW 36.73.120)

LID formation (RCW 36.73.080)

* Restricted to TBDs with an international border crossing with its boundaries.










CW%20http:/apps.leg.wa.gov/rcw/default.aspx?cite=36.73.120



REVENUE SOURCE: Local Option Motor Vehicle and Special Fuel Tax for Counties


WHO'S ELIGIBLE

Countywide (including incorporated areas).

WHERE ENACTED

No county has enacted this tax.

PURPOSE

For "highway purposes" as defined by the 18th Amendment, including the construction, maintenance, and

operation of city streets, county roads, and state highways; operation of ferries; and related activities.

PROVISIONS

Equal to 10% of statewide motor vehicle fuel tax and special fuel tax (3.75 cents per gallon based on 37.5-

cent statewide gas tax with the full implementation of a 9.5-cent tax rate increase included in 2005

Transportation legislation).

Countywide imposition (no city levy).

Revenues distributed back to county and cities contained within the county, levying the tax on a weighted per

capita basis (1.5 for population in unincorporated areas; 1.0 for population in incorporated areas).

Voter approval required.

Subject to planning provisions.

REVENUE ESTIMATE (For Fiscal Year 2012)

For revenue estimates by county, see Local Option Fuel Tax, page 129.



REVENUE SOURCE: Property Tax Road Levy

RCW: RCW 36.82.040

WHO'S ELIGIBLE

Counties (unincorporated areas).

WHERE ENACTED

Every county in Washington collects a property tax road levy.

PURPOSE

For construction, preservation, and maintenance of county roads, bridges, and wharves necessary for providing

vehicle ferry service, and for other proper county road purposes.

PROVISIONS

May not exceed $2.25 per thousand dollars of assessed valuation.

Proceeds are deposited in county road fund.

Any portion of the county property tax road levy may be diverted by the county legislative authority to any

other county-provided service (RCW 36.33.220); however, such diversion may make the county ineligible for

state road grants through the Rural Arterial Program of the County Road Administration Board (RCW

36.79.140).

REVENUE

Budgeted property tax road levy revenue for 2011 as reported by the County Road Administration Board:

$454.1 million (prior to diversions)

$403.1 million (net for roads after diversions)





REVENUE SOURCE: Transit Taxes

RCW: RCW 35.95.040, RCW 82.14.045

WHO'S ELIGIBLE

Transit districts.

WHERE ENACTED

28 transit districts have a sales tax or utility tax in place. This does not include Sound Transit which is shown

under High Capacity Transit.

PURPOSE

For operation, maintenance, and capital needs of transit districts. Voter approval is required for the B&O,

household/utility, and sales and use taxes described below.

PROVISIONS

Business and Occupation Tax (RCW 35.95.040)

Rate to be determined by transit district

Rate may be applied against value of products, gross proceeds, or gross income of business

May be used concurrently with household/utility tax for transit

May not be used concurrently with sales and use tax for transit


Household/Utility Excise Tax (RCW 35.95.040)

Up to one dollar per month per housing unit

May be used concurrently with B&O tax for transit

May not be used concurrently with sales and use tax for transit


Sales and Use Tax (RCW 82.14.045) (Authorized in 1971)

Up to a maximum of 0.9%

Exemptions and provisions of statewide sales and use tax apply

May not be used concurrently with B&O tax for transit or household/utility tax for transit


?

Regular property tax (RCW 84.52.140)

King County may impose an up to seven and one-half cents per $1,000 of assessed valuation, with the

first one cent to be used for transit service in the SR 520 corridor.

?

Motor Vehicle Excise Tax—local portion (35.58.273) (Repealed)

Up to 0.725% of the value of vehicles in the transit district

Chapter 6, Regular Session, Laws of 2002 repealed the local motor vehicle excise tax, retroactively

to January 1, 2000.

Public Transportation Benefit Areas (PTBA's) located in Puget Sound have additional tax authority to fund

passenger-only ferry activities. (RCW 36.57A.210).

REVENUE

For revenue estimates, see Local Tax for Transit, page 130.









Supporting Information



Local Option Fuel Tax Revenue Estimate (For Fiscal Year 2012)

(Dollars in Thousands)

County

Local Option Fuel Tax*

(3.75 cents/gallon)

Adams 351

Asotin 393

Benton 3,247

Chelan 1,333

Clallam 1,298

Clark 7,871

Columbia 74

Cowlitz 1,877

Douglas 713

Ferry 137

Franklin 1,487

Garfield 41

Grant 1,665

Grays Harbor 1,326

Island 1,437

Jefferson 546

King 35,609

Kitsap 4,633

Kittitas 754

Klickitat 370

Lewis 1,384

Lincoln 192

Mason 1,119

Okanogan 754

Pacific 379

Pend Oreille 238

Pierce 14,685

San Juan 287

Skagit 2,154

Skamania 202

Snohomish 13,203

Spokane 8,677

Stevens 795

Thurston 4,675

Wahkiakum 72

Walla Walla 1,075

Whatcom 3,712

Whitman 822

Yakima 4,505

Total 124,088

Note: Fuel tax collections at the county level are estimated from the county's share as a percentage of total state fuel gallons

taxed at 3.75 cents per gallon. State total is based upon November 2012 motor vehicle revenue actuals for FY 2012. The

county's share is based upon current population estimates provided by the Office of Financial Management. These estimates

do not have non highway use or tribal fuel tax refunds and transfers, or administrative expenses subtracted out.


Local Tax for Transit Revenue Estimates (For Calendar Year 2010 – 2012)

Transit District Local Tax Type

Current

Sales and

Use Tax

Rates

2010 Actual

Local Tax

Revenue

2011 Actual

Local Tax

Revenue

Estimated 2012

Local Tax

Revenue

Asotin County Transit Sales 0.2% 555,124 566,467 611,630

Ben Franklin Transit Sales 0.6% 23,897,058 26,440,116 28,187,256

Link Transit Sales 0.4% 7,317,606 7,487,655 7,578,596

Clallam Transit System Sales 0.6% 5,835,791 5,915,786 6,193,916

C-TRAN Sales 0.7% 21,862,484 22,574,256 23,345,293

Columbia County Public Transportation Sales 0.4% 210,998 238,190 261,037

Community Urban Bus System Sales 0.3% 2,832,264 2,839,374 2,548,718

Grant Transit Authority Sales 0.2% 2,328,332 3,092,668 2,902,464

Grays Harbor Transportation Authority Sales 0.6% 5,205,990 5,709,975 6,047,339

Island Transit Sales 0.9% 6,384,626 6,698,183 7,115,643

Jefferson Transit Authority Sales 0.9% 2,132,511 2,572,525 3,328,849

Metro Transit Sales 0.9% 366,303,167 391,175,223 400,267,724

Kitsap Transit Sales 0.8% 25,366,121 25,789,561 26,611,085

Twin Transit Sales 0.2% 1,213,889 1,253,489 1,300,002

Mason Transportation Authority Sales 0.6% 3,125,284 3,200,012 3,281,009

Pacific Transit System Sales 0.3% 671,981 662,498 686,320

Pierce Transit Sales 0.6% 64,070,591 63,758,339 67,590,042

Skagit Transit Sales 0.4% 7,801,433 8,356,820 9,344,622

Everett Transit System Sales 0.6% 15,181,487 15,424,318 15,959,599

Community Transit Sales 0.9% 62,485,187 63,758,339 66,112,485

Spokane Transit Authority Sales 0.6% 40,403,461 41,563,781 43,781,480

Intercity Transit Sales 0.8% 21,009,695 26,589,302 30,645,043

Valley Transit Sales 0.6% 2,469,828 3,834,440 4,272,706

Whatcom Transportation Authority Sales 0.6% 17,851,916 18,615,185 19,703,488

Pullman Transit Utility 0.3% 1,088,968 1,088,000 1,238,610

Selah Sales 0.3% 281,495 303,881 304,104

Union Gap Sales 0.2% 770,696 773,995 827,492

Yakima Transit Sales 0.3% 4,484,562 4,443,641 4,844,727

Subtotal: 713,142,543 754,726,019 784,891,281

Sound Transit

Sales (portions of King,

Pierce & Snohomish) 0.9% 500,618,580 528,799,436 539,744,489

MVET 0.3% 64,300,000 67,100,000 67,049,652

TOTAL 1,278,061,123 1,350,625,455 1,391,685,422

These following transit districts had increases in their sales tax rates during this time period: Island Transit (0.6% to 0.9%,

1/1/2010); Valley Transit (0.3% to 0.6% 7/1/2010); Thurston County (0.6% to 0.8%, 1/1/2011); Jefferson County (0.6% to

0.9%, 7/1/2011) and Clark County (0.5% to 0.7%, 4/1/2012).


Background Information

1. Border Area Motor Vehicle Fuel Taxes and Commercial Parking Taxes are based on WSDOT’s annual

survey of local government’s transportation revenues and expenditures.

2. Referendum Procedure for Motor Vehicle License Fee and Commercial Parking Tax (per RCW

82.80.090)

Petition to repeal vehicle license fee or commercial parking tax must be filed within seven days of

passage or the ordinance imposing the tax.

Petitioner has 30 days after ballot title written to obtain signatures of not less than 15% of registered

voters.

3. Revenue Assumptions for HOV and HCT Taxes

MVET

Uses latest actuals from Sound Transit through 2011

EMPLOYER TAX

County employment estimates are based on Employment Security Department actual monthly

average employees covered by the Washington Employment Security Act for calendar year 2011.

Revenue projections are for countywide tax.

SALES TAX

Revenue projected from 2011 actual, and assuming projected sales tax growth from the forecast

by the Washington State Office of the Forecast Council and long-term growth rates from Global

Insight October 2012 forecast.

The following transit districts had sales tax rate increases between 2010 and 2012.

Island County (increase 0.3%) Effective 1/1/2010

Valley Transit (increase 0.3%) Effective 7/1/2010

Thurston County (increase 0.2%) Effective 1/1/2011

Jefferson County (increase 0.3%) Effective 7/1/2011

Clark County (increase 0.2%) Effective 4/1/2012

Estimates are for a calendar year time period.

